A non tax lawyer hinted that there
may be exceptions or simplifications for dual citizens that are long term
residents of Canada(>10years)who resided short term in the US under the tax
treaty but he had no details.I was born in the US, but my parents moved here
when I was a young child, just turning 7. I have lived in Canada continuously
since 1964 and I have no accounts or real property in the US. I have been filing
full 1040's,8891's, T90's, without owing anything for years.

Are there any simplifications to full filing,
are there any types of income that don't have to be reported, or anything else,
either in the regulations, or in the IRA private rulings for people that are not
"active" US citizens but are living as active citizens of Canada permanently
with no intention of residing again in the US. Most information available is
applicable to people going back or forth, or have real ties to the
US.

(I got an error message using the form on the
website so I am emailing this question directly)

---------------------------------------david ingram replies:

No
US ties or association are necessary, just US citizenship gets you the honour of
having to file US tax returns for your whole life.

There are no exceptions for a US citizen and the
craziest penalty I ever saw was a $10,000 penalty for failing to file a TDF 90
for a 105 year old lady who had not lived in the US for 50 years and was
in a North Vancouver old folks home and suffering from senility. Her
financial affairs were being looked after by a niece who lived in Holland and
came to Canada two times a year to look after her aunt's affairs.

To
their credit, Justice did cancel the penalty when i explained the circumstances
but the accountant had filed a return showing $38,.000 of interest from the
Royal Bank in Edgemont Village and checked off "NO" to question 7 on Schedule
B.

You are stuck. Even if you give up your citizenship to escape
it, the IRS still demands 10 more years of tax returns and says that yo may not
enter the US for the rest of your life.This was part of Pres Bill Clinton's
Illegal Immigrant Bill of Sept 30, 1996.

It is too bad that you have not
been able to use your citizenship with a cross border occupation of some
sort.

You seem to be completing all of the forms. the only one that
might be missing is the 5471 if you are a 10% or more owner of a Canadian (or
French or German for that matter) corporation.

As of Jan 1, 2009, the
minimum fine for failure to file form 5471 is $10,000 for even being
late.

The IRS is allowing up to Jan 1, 2009 to get old ones caught
up.

You will / might get something more by going to www.centa.com and
reading the Oct 93 newsletter on Dual citizenship and the Oct 1995 newsletter on
the duties of a US citizen in Canada.

These two newsletters are in
the top left hand box on the front page.-----------In the second box
down, you will find some information on what the US citizen or Green card holder
living in Canada or any other country has to file with the US. When it was
written the 8891 form was not available and should be
added.

Disclaimer: This question has been answered without detailed
information or consultation and is to be regarded only as general
comment. Nothing in this message is or should be construed as advice
in any particular circumstances. No contract exists between the reader and the
author and any and all non-contractual duties are expressly denied. All
readers should obtain formal advice from a competent and
appropriately qualified legal practitioner or tax specialist
for expert income tax help, assistance, preparation,
or consultation in connection with personal or
business affairs such as at www.centa.com. If you forward this message, this disclaimer must be
included."

David Ingram gives expert income
tax & immigration help to non-resident Americans & Canadians from
New York to California to Mexico family,
estate, income trust trusts Cross border, dual citizen - out of
country investments are all handled with competence &
authority.